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Forums - Microsoft Discussion - $2.25 Billion in revenue for Xbox Division in Third Quarter 2018


Microsoft’s third quarter (Q3) fiscal results were posted in a press release today, with large growth mainly driven by the Azure cloud platform, which increased 93% year-over-year. The gaming business is also seeing growth, with a small drop in the PC business.

Here’s a look at the overall financials for Microsoft in third quarter 2018
  • Revenue was $26.8 billion and increased 16%
  • Operating income was $8.3 billion and increased 23%
  • Net income was $7.4 billion and increased 35%
  • Diluted earnings per share was $0.95 and increased 36%

Regarding gaming, Microsoft’s report states that “Gaming revenue increased 18% (up 16% in constant currency) driven by Xbox software and services revenue growth of 24% (up 21% in constant currency) mainly from third party title strength.” The Xbox division brought in $2.251 billion in revenue, up 18% year-over-over compared to $1.906 billion in Q3 2017.

It’s interesting that third-party titles were the main push for growth, with juggernauts like Fortnite, Far Cry 5 and Monster Hunter: World performing extremely well. Additionally, Sea of Thieves made the #2 spot in March’s NPD report, making it Rare’s fastest-selling game since 1995 and Microsoft’s fastest-selling new first-party IP this generation.

This is certainly fantastic growth, and it’ll be interesting to see how the remainder of the year unfolds.



Other important figures:


LinkedIn: +33% revenue
MS Azure (Cloud): +76%
Office 365: +36%
Gaming: +44%
Surface: +14%
Search Advertising: +17%

Imagine not having GamePass on your console...

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Any profit?

If you demand respect or gratitude for your volunteer work, you're doing volunteering wrong.

I like OP's focus on the gaming division which shows impressive growth.

It's been a great year for Xbox with healthy year over year growth led by Xbox One X. The PUBG exclusivity was a brilliant move as well. That game turned out to be a system seller.


Any word on Xbox profits?

Nice to see that Xbox is doing well i like the console and services.

Last edited by Jigsawx1 - on 25 October 2018

Microsoft keeps making money. I'm just glad to see so much going into the Xbox division. With their new focus on Xbox, I have put a lot more into the company this year, than I ever have in the previous 30 years of my life. As long as they keep on pushing Xbox Hardware, Software, Networking, and Services, I will keep on supporting them, and hoping for great results on their financials.

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The only console manufacturer who refuses to give shipment numbers or operating profit for their games division, makes their reports the least interesting.

vivster said:
Any profit?

They haven't been mentioning profit for a while now if I'm not mistaken but I doubt the gaming divisions hasn't been profitable for a few years now. Software sales are strong (even if their first party isn't), added with revenue from XBL and accessories. There is no way in hell their base Xbox one is losing money per unit and I doubt the 500$ price tag on the X isn't at least breaking even. 


The only thing I could see them making a loss this quarter is if they deduct the price of all the studios they bought. 4 studios aren't cheap. 

vivster said:
Any profit?

Also want to know this.

8.82 Billion is the profit.

and the Hardware income is 95% over the 1st quarter in 2018

Jigsawx1 said:

8.82 Billion is the profit.

and the Hardware income is 95% over the 1st quarter in 2018

That's Microsoft profit, not XBox.

About the bigger revenue. It's year on year, right? So it's related to the Xbox One X release, it doesn't help at all for the sales unfortunately. 18% more money, but what is the difference in price between the X now and the slim last year?